27th Edition
WARREN + 5 others
ISBN: 9781337272094




27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Times interest earned

A company reports the following:

Income before income tax $4,000,000
Interest expense 400,000

Determine the times interest earned ratio. Round to one decimal place.

To determine
Times interest earned ratio

Given info: Income before income tax and interest expense.


Times interest earned ratio quantifies the number of times the earnings before interest and taxes can pay the interest expense. First, determine the sum of income before income tax and interest expense. Then, divide the sum by interest expense.


Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

List and describe the three functions of money.

Brief Principles of Macroeconomics (MindTap Course List)

FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment i...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Identify three types of businesses according to activities.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Explain the calculation of net sales and net purchases.

College Accounting (Book Only): A Career Approach

Does interest rate parity imply that interest rates are the same in all countries?

Fundamentals of Financial Management (MindTap Course List)